Lapid comes out against sale of Israel Chemicals to Canadian giant

Finance Minister Yair Lapid on Wednesday spoke out against a proposed merger between Israel Chemicals Ltd. (ICL) and Canada’s Potash Corporation of Saskatchewan, saying that Israelis should benefit from the country’s national resources.

Employees of ICL have vehemently opposed the deal, which would increase PotashCorp’s grip on the potash industry. The potassium-based product, which ICL produces at its Dead Sea plant, is primarily used in fertilizers.

“Israel’s natural resources are public property, and the Israeli public should be the first to benefit from them,” Lapid said.

He also called for the creation of a committee to reexamine Israel’s rights to natural resources that are managed by private companies.

In late February, before he was named finance minister, Lapid called the sale of ICL to PotashCorp an “un-Zionist act.”

The Canadian company is seeking to increase its current 13.8% share of ICL to somewhere between 51% and 100%. The deal would require approval by the Israeli government, which holds a “golden share” in the Israel Corporation, ICL’s parent company. Such a share allows special voting rights in a company, including veto power on mergers.

Talks came to a standstill as Prime Minister Benjamin Netanyahu struggled to form a new government following January’s elections. But in recent weeks PotashCorp has been renewing its lobbying effort with top government officials, including the prime minister, a known proponent of privatization.

Arno Rosenfeld contributed to this report.